Tamilnad Mercantile Bank Records 58% Increase In FY20 Net Profit
Money & Banking
Tamilnad Mercantile Bank Ltd has reported an impressive performance for 2019-20 with growth in profits and improvements in asset quality.
The bank recorded a 58 per cent increase in its net profit at ₹408 crore for the year ended March 31, 2020 when compared with ₹259 crore in the previous fiscal, on the back of higher operating profit.
The operating profit grew 13 per cent to ₹995 crore (₹884 crore in Q4 of FY19). The net interest income was higher at ₹1,320 crore (₹1,230 crore).
Interest Income increased by 7 per cent at ₹3,466 crore (₹3,224 crore), while non-interest income grew by 27 per cent to ₹526 crore as against ₹414 crore.
The company’s gross NPA declined to 3.62 per cent as of March 31, 2020 from 4.32 per cent as of March 31, 2019, while net NPA dropped to 1.80 per cent from 2.40 per cent. Provision coverage ratio of the Bank increased to 80.75 per cent (73.61 per cent in FY19).
Advances and deposits of the bank grew about five per cent each at ₹28,236 crore (₹27.018 crore in FY19) and ₹36,825 crore (₹35,136 crore) respectively. CASA grew 10 per cent at ₹9,518 crore (₹8,654 crore).
The Bank has been giving continued thrust on loans to priority sectors like agriculture, MSME, education and housing, constituting 68.49 per cent of its adjusted net bank credit, above the regulatory requirement of 40 per cent, according to a statement.
During FY20, loans to priority sector increased to ₹18,712 crore (₹16,934 crore in FY19), an increase of 10.50 per cent. Loans to agriculture sector stood at ₹6,994 crore, while credit to MSME sector grew by six per cent to ₹10,706 crore (₹10,083 crore).
During this fiscal, the bank is planning a slew of technology initiatives including setting up of 50 more e-lobbies, a stronger push for mobile and internet banking, among others, said KV Rama Moorthy, Managing Director and CEO of the bank.
Also, Tamilnad Mercantile Bank has disbursed 10,005 fresh loans for a total amount of ₹927.63 crore under Emergency Credit Line Guarantee Scheme (ECLGS) during the pandemic.
About 67 per cent of eligible accounts availed the moratorium announced under Covid-19 scheme.
Published on
June 28, 2020
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Tamilnad Mercantile Bank Ltd has reported an impressive performance for 2019-20 with growth in profits and improvements in asset quality.
The bank recorded a 58 per cent increase in its net profit at ₹408 crore for the year ended March 31, 2020 when compared with ₹259 crore in the previous fiscal, on the back of higher operating profit.
The operating profit grew 13 per cent to ₹995 crore (₹884 crore in Q4 of FY19). The net interest income was higher at ₹1,320 crore (₹1,230 crore).
Interest Income increased by 7 per cent at ₹3,466 crore (₹3,224 crore), while non-interest income grew by 27 per cent to ₹526 crore as against ₹414 crore.
The company’s gross NPA declined to 3.62 per cent as of March 31, 2020 from 4.32 per cent as of March 31, 2019, while net NPA dropped to 1.80 per cent from 2.40 per cent. Provision coverage ratio of the Bank increased to 80.75 per cent (73.61 per cent in FY19).
Advances and deposits of the bank grew about five per cent each at ₹28,236 crore (₹27.018 crore in FY19) and ₹36,825 crore (₹35,136 crore) respectively. CASA grew 10 per cent at ₹9,518 crore (₹8,654 crore).
The Bank has been giving continued thrust on loans to priority sectors like agriculture, MSME, education and housing, constituting 68.49 per cent of its adjusted net bank credit, above the regulatory requirement of 40 per cent, according to a statement.
During FY20, loans to priority sector increased to ₹18,712 crore (₹16,934 crore in FY19), an increase of 10.50 per cent. Loans to agriculture sector stood at ₹6,994 crore, while credit to MSME sector grew by six per cent to ₹10,706 crore (₹10,083 crore).
During this fiscal, the bank is planning a slew of technology initiatives including setting up of 50 more e-lobbies, a stronger push for mobile and internet banking, among others, said KV Rama Moorthy, Managing Director and CEO of the bank.
Also, Tamilnad Mercantile Bank has disbursed 10,005 fresh loans for a total amount of ₹927.63 crore under Emergency Credit Line Guarantee Scheme (ECLGS) during the pandemic.
About 67 per cent of eligible accounts availed the moratorium announced under Covid-19 scheme.
Published on
A letter from the Editor
Dear Readers,
The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill.
In these difficult times, we, at BusinessLine, are trying our best to ensure the newspaper reaches your hands every day. You can also access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute.
But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.
I appeal to all our readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. You can help us by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section.
Our subscriptions start as low as Rs 199/- per month. A yearly package costs just Rs. 999 – a mere Rs 2.75 per day, less than a third the price of a cup of roadside chai..
A little help from you can make a huge difference to the cause of quality journalism!
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